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Supply Chain EDI Supplier Accreditation Guide

EDI Supplier Accreditation Guide of 25 July 2017 © Myer Pty Ltd

Accreditation Guide

This guide provides Suppliers with the necessary information to complete their Accreditation for the Myer EDI – Electronic Data Interchange Process.

It includes:

♦ Business Processes and Technology foundation 3

♦ Technology components of a solution 4

♦ Selecting a solution that is right for your business 5

♦ Choosing a Value Added Network 8

♦ Implementation Steps prior to testing 9

♦ The Testing process 10

♦ Measuring and monitoring success 19

♦ Operational & Technical checklist 20

♦ Checklist for sending your first ASNs 24

♦ Sample Logistics SSCC Label (GS1-128) 25

It is important that everyone in your organisation who will be impacted by the new process is involved in reviewing the relevant section of the document for their role.


Business Process and Technology foundation

Commitment within your organisation Before you commence trading electronically with Myer Pty Ltd, a number of critical processes need to be in- place:

♦ In order to do business with Myer you must be accredited and understand the costs associated with the process

♦ Confirm your organisation’s commitment and support for EDI – Electronic Trading

♦ Review the operational impacts on your business, from order entry through to order fulfilment

Potential Process / Technology changes Effective implementation of the Myer EDI process will provide your organisation with the tools to transform your business, with faster response times and more accurate shipments. To accomplish this you may require some technology and process changes to your existing operations.

♦ Develop the process for the creation and transmission of Reverse Purchase Orders, if applicable for your business model with Myer

♦ Adopt scanning technology for the pick & pack process, reducing manual counting errors and speeding up the process. This will provide more accuracy and should reduce the paperwork associated with shipping the products (packing slips, etc)

♦ Ensure sufficient checks and controls exist in the pick & pack process to enable packing by store, Logistics labelling and incorporation of Logistics labels (including the SSCC) and ASN creation

♦ Minimise manual intervention, where possible eliminate the need to manually track merchandise movement throughout your facility. This will prevent discrepancies & errors between the EDI order received and the EDI ASN sent


Technology components of a solution

A solution that meets the Myer EDI – Electronic Trading requirements will have all the components identified below. When estimating a total solution cost, price quotes should incorporate all these components ...

EDI translator (configured)

Communications software

PC configured Modem Printer Bar code scanner

User interface (pick/pack)

Bar code software

To facilitate the creation of the Advanced Ship Note and if applicable, the Reverse Purchase Order

Required to print price tickets and Logistics Labels

Required to send and receive EDI transactions

Required to convert EDI format orders to data for the suppliers systems. Also to convert data for RPOs and ASNs from suppliers systems into EDI format

Hardware

Software

Software

Software

Software


Selecting a solution that is right for your business

There are several choices available in developing a solution for your business

♦ A scan packing solution from an existing solution / system provider

♦ A Custom built in-house solution

♦ A 3rd Party scanpack provider

Please review your options for meeting the requirements of Myer EDI by deciding on: - Purchasing a technical packaged solution

- Modify/Develop your in-house systems

- Use a 3rd Party Scanpack provider.

If the solution you choose is a package, the components are all bundled together. (See Technology Components diagram on previous page)

Established an EDI scan pack solutions

There are a number of solution providers with packages accredited by Myer that will meet all of the requirements of the Myer EDI process.


Selecting a solution that is right for your business cont’d

Established solutions

Off the shelf existing solutions generally have the following characteristics ...

♦ Quick to implement

♦ Initial capital cost but low ongoing maintenance

♦ Low risk (ability to accurately predict final project cost)

♦ An integrated PC based software package with minimal software development required

♦ PC, Printer, Modem and Bar code scanner included (increasing accuracy and speed)

♦ Translation software included

♦ Minimal training

♦ Upgradeable with support package

♦ Support help from providers

If you choose an established solution, it is essential that you explore with the provider the degree of integration required with your existing systems and the level of support that will be provided to you.

Customised development (In-house or Other packages)

Customised developments often have the following characteristics and may take considerably longer to implement...

♦ Higher risk (difficult to predict final project cost)

♦ Longer to implement (more risk of not meeting deadlines)

♦ Able to easily integrate with current accounting systems

♦ More consistent with internal systems architecture

♦ Scanner programming required in addition to EDI skills

♦ Translation software purchase or modification required


Selecting a solution that is right for your business cont’d

Third party scanpack providers

There are a number of distribution companies who offer services that will meet the Myer EDI Technical requirements for a price per unit processed. They will...

♦ Receive EDI orders on your behalf, or a copy from your system

♦ Print price tickets and attach them

♦ Prepare any other floor ready requirements

♦ Scan pack by store and apply Logistics labels

♦ Transmit ASNs on your behalf to Myer, and if required a copy to your system

♦ Arrange for despatch of shipments to Myer

Establish the degree of integration you require

Determine the extent to which you will integrate your solution with existing systems, for example...

♦ Transferring EDI purchase order details into your production planning system

♦ Transferring EDI purchase order details into your inventory system

♦ Transferring EDI purchase order details into your ticket production system

♦ Transferring scan pack details into your inventory system

♦ Transferring ASN details into your accounts receivable system

♦ Transferring despatch details to trigger sending ASNs via EDI

Tell us what you have decided

Once you have decided on a solution, please inform the Myer EDI team. This will enable Myer to work with you to ensure the system testing and implementation is completed on time.

e-mail: [email protected]

Phone: 1300 667 007 – then select option 6, followed by option 2


Choosing a Value Added Network

Network providers There are a number of network providers actively supporting the Merchandise retail trade.

Please refer to the separate document (EDI Contacts List)

Questions to ask a Network provider Suppliers will need detailed answers to the following questions...

♦ Transmission frequency ?

♦ Data security ?

♦ Split of Fixed and Variable costs?

♦ What are the on-going costs with regard to phone and on site support?

Myer Value Added Networks

Myer

Regular mail box checking

Other networks

Supplier

?

?


Implementation steps prior to testing

Work to scheduled milestones...

Send the signed copy of the Myer Pty Ltd ‘Standard Supply Agreement, along with the Supplier Registration Form and or any other agreement forms to the Myer Buyer you are dealing with.

Decide whether to build or buy an EDI solution or if you will use a third party scanpack provider

Advise the Myer EDI team which solution or network provider or 3rd party provider you have chosen.

Initiate internal discussions to integrate the Myer EDI process in your operations

Confirm chosen EDI solution or 3rd party with Myer EDI Team

Confirm with the Myer EDI Team your scheduled testing plan and dates


The Testing Process

Once your new processes and technology are in place, we will begin a series of tests with you to accredit your system and ensure complete and accurate information flows between our systems. This will enable the efficient movement of goods through our distribution centres to stores & customers, and correct payment for the goods. This testing process will be expedited if an established solution package or 3rd party is selected.

Please note, this testing process can be more involved if a customised solution is selected, that is a choice for each Supplier to determine.

The testing stage is critical to ensure that no technical problems within your operations will impact the movement of goods to the stores, Sales to customers and Myer is processing payments to you.

The Myer EDI team is available to assist and support with the implementation :




The Testing Process contd

Which trials are applicable to your organisation? The specific tests to be conducted will depend on your current EDI capability and the type of orders we have agreed to use. Review the following list with the Myer EDI Team to determine the specific tests that need to be undertaken...

or

♦ Alignment of GTIN (EAN/UPC/APN) details

♦ Purchase Order ...

♦ Order Types (SA, BK, RL)

♦ Retail segment

♦ Distribution centre delivery point

♦ Sales/stock on hand/stock on order

♦ Reverse Purchase Order ...

♦ “Replenishment” order format

♦ “Recommended” order format

♦ Tickets and Logistics Labels

♦ ASN


The Testing Process cont’d

Alignment of GS1 details

GS1 registration in both supplier and Myer systems

The purpose of this test is to ensure that there is alignment between the supplier and Myer systems in the data registered for each product you supply.

The test involves checking your product file against the Myer product file to ensure alignment of GTINS, keycodes where applicable, Cost & Retail prices where applicable and class groups

This test is required for suppliers who wish to confirm that the details in their product file, particularly cost prices, are aligned to the data that Myer will transmit in EDI purchase orders.

♦ Myer will provide a report of all SKUs registered in our system for the supplier. The report will list for each SKU the class group number, Myer keycode, GTIN, supplier style code, item style description, product description, size, supplier colour, cost price and retail price

♦ The supplier will cross check the list with their product file to ensure all relevant products are registered and that the details are correctly matched

♦ The supplier will raise any discrepancies with the relevant Myer Buyer

♦ Myer will amend the details in our system once agreed

To organise for this test to occur ... contact the Myer EDI Team



EDI Purchase Order Test

Receiving EDI purchase orders

The purpose of this test is to ensure Suppliers can receive all relevant segments of purchase orders from Myer in all formats.

This test is required for suppliers who have not previously received EDI purchase orders with all of the listed characteristics.

♦ Myer will send test purchase orders. They are to be used to test the suppliers capability to receive the order, send a functional acknowledgment and successfully map the data contained in the orders to the supplier’s system - They are not to be supplied against

♦ The following types of order can be sent with the retail segment ...

Order type EDI purchase order type

♦ One delivery point, one store allocation Combination

♦ One delivery point, many store allocations Combination

♦ A blanket order not yet allocated Blanket order (BK)

♦ An allocation for blanket order Release order (RL)

♦ An amendment to an order Where BEG segment = 07

♦ Deliver to distribution centre Basic

♦ Deliver direct to store Basic



EDI Purchase Order Test cont’d

♦ These orders cover the different types of EDI transactions that your system must be able to receive

♦ Our aim is to Test your EDI system to ensure it can receive the Purchase Order and return the FA – Fuctional Acknowledgement successfully and then process and return via EDI the ASN – Advanced Ship Notice.

♦ The supplier should check that each order has been successfully received and that all data has been successfully mapped to the correct fields in their system. The supplier’s system should perform sufficient checks to ensure the transmitted order has been received completely and accurately

♦ A functional acknowledgment is required for each purchase order. This should be generated upon download of the order from the network. Myer will confirm receipt of the functional acknowledgments for this test. Confirmations for receipt of functional acknowledgments will not occur in production

♦ When suppliers confirm that they are able to successfully receive EDI purchase orders Myer will begin sending ‘live’ orders.

To organise for the test to occur ... contact the Myer EDI Team

Sales/Stock On Hand/ Stock On Order Test (PAD)

Establishing transmission of Sales/Stock On Hand/Stock On Order information

The purpose of this test is to establish the EDI parameters which will create automatic transmission of data to the supplier each week.

This test is required for suppliers who require transmission of data on a weekly basis – this data is also of benefit for use and creation of Reverse Purchase Orders option.

♦ The Supplier will advise of the required date of the first transmission of PAD (all active GTINs registered in the Myer system)

♦ Myer will set up transmission flags in the EDI system and the first transmission will commence on a weekly basis as notified

To organise this test ... contact the Myer EDI Team



Reverse Purchase Order Test

Building and transmitting Reverse Purchase Orders

The purpose of this test is to ensure that suppliers can transmit Reverse Purchase Orders (in the agreed formats) and ensure that Myer systems can receive them.

This test is required for suppliers who will be sending Reverse Purchase Orders

♦ The Supplier will advise of the formats (“Replenishment and/or “Recommended”) and that test reverse purchase order/s will be transmitted

♦ Myer will ensure that our EDI system is set to receive the test reverse purchase orders in the appropriate formats

♦ Myer will receive the test reverse purchase orders and validate that they are complete and accurate. Myer will send a functional acknowledgment to the Supplier

♦ When this test is successfully completed, Myer will change a filter in the EDI system that will allow supplier’s “Replenishment” Reverse Purchase Orders to be sent to our production system, for the creation of open orders ready for the receipt of merchandise or in the case of “Recommended” orders they will be available to Buyers for review

Advise the Myer EDI Team when you are ready to conduct this test.

Tickets and Logistics Labels Test

Printing price tickets, GTIN/EAN/UPC in bar code symbols and Logistic Labels incorporating Serial Shipping Container Codes (SSCCs)

The purpose of this test is to establish that the price tickets and Logistics Labels are printed in the correct format, contain the correct information and are scannable at Myer point of sale and distribution centre laser bar code scanners

This test is required for Suppliers who have not previously submitted tickets and SSCCs for format validation.

♦ The supplier will submit a sample for each type of Myer price tickets and GTIN in an EAN (APN) bar code for the products they supply to Myer

♦ Myer will verify the print quality, layout and information by scanning the price ticket

♦ The supplier will submit a number of Logistics labels for verification. These should be created from the data contained in the test orders sent in the EDI Purchase Order trial

♦ Myer will verify the print quality, layout and information by scanning the SSCC on the logistics labels using our high resolution scanners. This will ensure deliveries are not rejected during the receiving process

Advise the Myer EDI Team when you are ready to conduct this test



ASN Test

Building the ASN

Myer teams may visit the supplier’s premises to validate the methods the Supplier uses to create an ASN and that the ASN complies with the Myer EDI Technical requirements.

Myer validation routines for receiving ASNs...

♦ Upon receipt of an ASN, Myer will validate the information below. If an ASN fails any one of the validation tests it will be highlighted to the distribution centre and the delivery will be rejected until a valid ASN has been successfully created

The validation rules are...

♦ An ASN must relate to the most recently transmitted version of the EDI order or reverse purchase order

♦ An ASN must relate to a valid purchase order or reverse purchase order

♦ An ASN must relate to only one purchase order or reverse purchase order

♦ The ASN number must not duplicate a valid ASN previously received and processed from that supplier

♦ An ASN must not relate to a ‘blanket’ purchase order. Blanket orders are sent to reserve merchandise (Myer will send an allocation for all blanket orders - suppliers must not ship against a blanket order)

♦ An ASN must relate to a valid delivery point, RDC or Store

♦ An ASN must relate to only one delivery point, RDC or Store

♦ Each Logistics SSCC Label must be unique

♦ Each Logistics SSCC Label must be for a store allocation noted on the purchase order or reverse purchase order - There may be more than one Logistics label per store allocation - For some merchandise the store allocation may be to the central location within a Regional Distribution Centre or for a specific customer

♦ Each Logistics SSCC Label must contain only one store’s allocation (but may contain multiple GTINs)

♦ The GTIN on the ASN must also be present on the purchase order (no substitutions)

♦ The GTIN/s quantities must not be greater than the ordered quantity for each store allocation

Suppliers should ensure that their system follows these rules when creating an ASN. This will avoid unnecessary delays in processing ASNs and ASN failures.



ASN Test cont’d

Building the ASN cont’d

The purpose of this test is to establish the accuracy of the ASN build process, to ensure that the supplier can transmit ASNs and to ensure that Myer can receive them.

This test is required for suppliers who have not previously been accredited and successfully completed the ASN testing process.

♦ We will agree on which production order or reverse purchase order we will test. The order or reverse purchase order should be picked and packed in the normal manner.

♦ The supplier will download the purchase order into their system and print the required number of GTIN/EAN/UPC barcode symbols and/or price tickets

♦ The supplier will then scan those tickets to build their ASN

♦ Upon completion of this exercise the supplier will send the ASN electronically to Myer

♦ Myer will then receive the ASN into our test system and validate that the ASN is complete and accurate. Myer will send a functional acknowledgment

♦ The supplier should check that they have received the functional acknowledgment

♦ We will check the content of the ASN against the detail of the order to validate the accuracy of the packing process

♦ This test must be completed with 100% accuracy

♦ When this test is successfully completed Myer will change a filter on our EDI system that will allow supplier ASNs to be sent to relevant delivery points for automated receiving



Going live ... the Myer EDI electronic trading process Once accredited, you will...

♦ Accept purchase orders and return functional acknowledgments

♦ Notify the Buying team within 2 working days of any changes required to Indent orders

♦ Pack all products by store (which for some merchandise may be a central stock location or a specific customer)

♦ Price mark all goods (or as agreed with the Buyer regarding floor ready requirements)

♦ Scan product bar code symbols throughout the pick/pack shipment process

♦ Apply Logistics label (including the SSCC/s) to cartons with a unique number

♦ Send the ASNs to the Myer EDI Address mailbox for all shipments at the conclusion of the packing and receive a functional acknowledgment

♦ Despatch all cartons/hangwear bags to the allocated Regional Distribution Centres, Store or Customer depending on the delivery point of the order

♦ Receive payments via direct credit to your account. This amount will be based on the ASN quantity reconciled to physical receipt extended by the purchase order cost. Only goods physically received will be paid for

Please Note ... Once accredited, NO invoices are to be supplied with deliveries.

Your consignment note must quote the number of cartons/hangwear bags and the purchase order numbers.


Measuring and monitoring success

Tracking The Myer EDI team will track your progress and provide post implementation support for up to 3 weeks after the accreditation if needed. In addition as part of EDI accreditation Myer setup an automated ASN error notification e-mail. So if ASN’s do go into error an automated e-mail can be sent to the suppliers nominated e-mail address. Please Note ... It is important that the Myer EDI team have the right contacts for efficient follow through on the ASN error and any issues that arise.


Operational / technical checklist

This operational / technical checklist provides suppliers with a guide to ensure they have covered off the fundamental components of the Myer EDI requirements. This will ensure that suppliers have sufficient controls and processes in place to consistently meet these requirements.

Internal Supplier preparation/ selection decisions

Internal meetings to make all key managers aware of the components of the Myer EDI Process - impacts to systems, production, despatch, accounting

Evaluate the current options and decide on the solution that fits your business the best - keeping in mind functional requirements and timelines

Evaluate and select a value added network (VAN) that meets your frequency and security requirements

Complete the purchase order mapping (EDI technical manual)

Information to send to the buyer

Raise any point for clarification re the terms for supply with the Buyer. A listing of products supplied to Myer with ...

♦ The GTIN (EAN/UPC/APN) ♦ The full product description including colour and size details ♦ The Myer product cost ♦ The recommended retail price, if applicable

The signed and completed Supplier Registration Form and also the Standard Supply Agreement and any other agreement documents to be returned to the buyer.

Information to send to the Myer EDI Team

Notification of your selected network and technical solution or 3rd party scanpack provider.

If you have any questions, please contact the Myer EDI Team:



Myer supplier website: http://myersupplier.myer.com.au


mailto:[email protected]

http://myersupplier.myer.com.au/

Operational / technical checklist cont’d

Hardware / software systems

Review hardware compatibility early in the process

Your computer hardware should be installed, tested and fully operational before the Myer testing commences

Ensure all software components are functional ...

♦ User interface (can shipments be built quickly)

♦ Bar code software

♦ Translation software

♦ Communications software

Interface EDI orders and ASNs to existing inventory control and accounting systems. This component is important if EDI is to integrate into your current systems environment

Printing Logistic Labels (SSCC) and Price tickets

Determine if price tickets/ Logistics labels should be pre printed or printed as they are required

Procedures must be in place to apply GS1 – 128 (UCCIEAN-128) incorporating Logistics labels (SSCC) to cartons / hangwear bags

Obtain price ticket and Logistics label stationery prior to initiating formal testing cycles

Bar codes on price tickets and Logistics labels should be verified internally prior to forwarding them to the Myer EDI Team.


Operational / technical checklist cont’d Order fulfilment

Internal procedures should be in place to check your EDI mailbox at least daily

Internal procedures should be in place for situations when orders are received that contain cost prices, quantities or dates that you do not agree with/ cannot meet

Internal procedures should be in place to recognise the retransmission of purchase orders, to identify what has changed and to overwrite the previous version of the order

Internal procedures should be in place to ensure that when scan packing commences, the latest transmitted EDI order is used

Processes/ procedures should be in place to fill orders well within the delivery window. Ensure you have contingency plans to meet that window in the event of operational problems

Reverse purchase order generation

Internal procedures should be in place to check that all GTINs and cost prices are aligned with details registered in Myer systems

Internal procedures should be in place to check that quantifications are aligned to the agreed order parameters

ASN transmission

Procedures should be in place to control the packing process and associating items to unique carton identifiers (logistics label, incl. SSCC). For example, controlling the time when labels are affixed and ensuring cartons/hangwear bags are sealed as the packing is finished

Checks and controls should exist to periodically verify/audit deliveries to ensure all items are correctly packed by store, have price tickets, the right SKU and are in a correctly marked carton/bag referenced in the Advance Ship Note

Checks should be in place to ensure all cartons/bags included on an ASN are actually despatched together, split deliveries will be rejected unless specified within the order

Checks and controls should be in place to ensure that the ASN will be received via EDI prior to your carrier booking the ASN’s into Infast on line booking system. Infast Support line 03 9360 1196.

Plans should be in place to re transmit ASNs if required. For example, a network failure, power loss, software / EDI configuration problem


Operational / technical checklist cont’d

Invoices/ order integration

Once accredited, Myer DO NOT require invoices. Ensure plans are in place with your accounts area to ensure paper invoices are not supplied with deliveries to Myer and that their accounts receivable system gets updated accordingly

Ensure plans are in place to recognise EFT payments by Myer and reconcile them to ASNs and accounts receivable (Note that Myer send the ASN number as the reference on remittance advices)

Orders should be integrated into your order entry system once received

Software features / controls

Ensure the following information is validated prior to accepting/shipping an order ...

♦ GTIN / SSCC information

♦ EAN Barcodes

♦ Cost data

♦ Availability

♦ Duplicate purchase order numbers


Checklist for sending your first ASNs (after completing testing)

Please complete the following checklist for the first production shipment to Myer under the EDI initiatives.

Electronic Data Interchange between Myer and our strategic suppliers is a key element in our dedication to customer service and satisfaction.

The EDI initiative is dependent upon sharing accurate, timely and vital information between our two respective organisations. When Myer receives a late or bad ASN, the delivery will be rejected until the problem has been resolved. By filling the order correctly and by transmitting information accurately and on time, we can avoid these situations and subsequent cost and delay.

Please take action now to ensure that ASNs are always transmitted successfully to Myer. This will ensure that merchandise flows to the customer as scheduled and that your organisation will not receive any compliance rating downgrades and or potential cost recovery charges.

Late or bad ASNs, as of a date that is mutually agreed upon, can lead to cost recovery charges deducted from future remittances.

Please review the following with all impacted areas within your organisation...

We have verified that the latest transmitted EDI order was used for the scan pack operation

Yes No

We have verified the correct merchandise quantities have been picked and staged for packing

Yes No

We have verified the correct merchandise and quantities have been packed within each carton/bag

Yes No

We have verified each carton / fashion bag has an appropriate Logistics label incorporating a unique Shipping Container Code (SSCC) affixed

Yes No

We have verified the correct merchandise and quantities for each carton / fashion bag / SSCC have been recorded into the system

Yes No

We have verified the physical carton / fashion bag contents are reflected on the electronic ASN

Yes No

We have verified the correct number of cartons / fashion bags were loaded onto the carrier’s truck

Yes No

We have verified the transmission of the ASN (return of a functional acknowledgment)

Yes No

We have verified the ASN will be received by Myer receiving point (DC/Store) before the goods arrive

Yes No

We have used a scanner to pack cartons and fashion bags to build the ASN and the shipment

Yes No

Thank you for all your co-operation during this implementation.


Sample SSCC Logistics label (GS1-128)

Label size is A6 (148 mm x 105 mm) or nearest equivalent.

Please refer to the document Logistics Label (SSCC) Specifications for detailed explanations of Label components.


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